The Federal Reserve plans to implement new reporting rules for banks lending to private credit According to a report by Golden Finance, on May 9th, Bauman, the Vice Chairman of the Federal Reserve responsible for regulation, stated that the Fed will introduce new regulatory reporting requirements to increase transparency in banks' lending to private credit and other so-called "non deposit financial institutions" (NDFIs). According to Bauman's speech scheduled for Friday at the annual monetary policy conference of the Hoover Institution at Stanford University in California, "This update requires large banks to report relevant financial information of non deposit financial institutions they provide credit to, including total assets, net profit, and leverage ratio, in order to analyze credit underwriting and conduct ongoing risk assessments Bauman pointed out that current data reports rely on industry classification codes, which are too broad to effectively measure specific risk exposures. The lack of granularity makes it very difficult to assess concentration risk, measure interdependence, or calibrate capital requirements based on actual risk. Bauman believes that the regulatory reforms implemented after the 2008 financial crisis had an unexpected consequence, which was to shift lending activities from the banking sector to non deposit financial institutions. Ironically, the treatment banks receive when lending to private credit funds is more favorable than lending directly to reputable companies, "Bauman said." This treatment encourages banks to provide funds to intermediaries rather than directly serving end borrowers. "She mentioned that banks have seen a significant increase in loans to non deposit financial institutions, but" overall, there seems to be sufficient collateral support. (Dongxin Society)